which of the following best describes a conditional insurance contract

If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Parent and children Connect with others, with spontaneous photos and videos, and random live-streaming. Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? B) A paid premium An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. Conditional, Under a contract of adhesion, Intent, The deeds and actions of a producer indicate what kind of authority? D) Authority given to an agent to act outside the scope of the agency agreement, B) Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties, Legal purpose is a term used in contract law meaning Which of the following is the best descriptive word? Because of this, an insurance contract is considered Only the insured pays the premium Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? C) A contract where one party "adheres" to the terms of the contract The amount of his disability income payments for an on-the-job injury may be reduced by. Multiple-choice. Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. In this situation, who will receive Bob's policy proceeds? What is the difference between insurance condition and warranty? An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. What kind of policy is this? Which military service exclusion clause would pay upon his death? Notify me of follow-up comments by email. term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. A) fiduciary bond Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? C) Law of large numbers How do insurers predict the increase of individual risks? Have a great time ahead. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. What is a corridor in relation to a Universal Life insurance policy? only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". producer Typically, bilateral contracts involve an equal obligation or. C) promises made Which of the following best describes how you analyze a fiction text What guarantees that the statements supplied by an insurance applicant are true? Which of these statements is true? C) adhesion When initial premium is collected and policy is issued. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. C) Contract must have a legal purpose Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? conditional After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. B) errors and omissions Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Consideration clause Which of the following does a life insurance policy summary normally include? (A) Both parties to the contract are bound to the terms. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. Andy the annuitant dies before the annuity start date. A) Unilateral Which type of life insurance policy is this? Policyowner has the right to select the investment which will provide the greatest return. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. A) Sister and brother Which of the following statements correctly describes a contract of indemnity? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? B. Aleatory Contract Definition, Use in Insurance Policies - Investopedia A) Only the insured pays the premium B) concealment In order for a contract to be valid, it must. be signed and witnessed by an attorney Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. both parties consent to the contract. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? Which Of The Following Best Describes A Conditional Insurance Contract A) A contract that requires certain conditions or acts by the insured individual B) A contract that has the potential for the unequal exchange of consideration for both parties C) A contract where one party "adheres" to the terms of the contract Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? C) Apparent authority A) warranty Which of the following is a reinstatement condition? Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. D) collateral, Express power given to an agent in an agency agreement is Conditional Contracts: Everything You Need to Know - UpCounsel D) Intent, Which contract element is insurable interest a component of? C) Aleatory Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. B. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. apparent authority Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? 1 pt. Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. Producers act in a(n) ________ capacity when holding insurance premiums. Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? conditions, Legal purpose is a term used in contract law meaning Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. Contestability clause, In order for a contract to be valid, it must Which of the following is CORRECT regarding the death benefit amount? A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. A) voidable The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). (D) Only one party is legally bound to the contract. D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. To see this page as it is meant to appear, please enable your Javascript! This rider is called a(n). b. benefits paid under workers compensation. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? c) a contract must be in writing. the policy provides a straight, level $100,000 of coverage for 5 years. What types of life insurance are normally used for key employee indemnification? If thats the case, you dont have to worry anymore. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. The terms of the policy typically outline these conditions . Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? aleatory written contract How soon can the benefit payments begin with a deferred annuity? C) there must be legal reasons for entering into the contract B) written contract D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. In the case of an insurance contract, the contracting parties are the claimant and the insurer. Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. A contract that requires certain conditions or acts by the insured individual. D) Only the insured is legally bound, Bob and Tom start a business. A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. 2 See answers This is also known as a non-negotiable insurance contract, or an automatic contract. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? However, corporations also can raise money by selling bonds or issuing additional shares of stock. Required fields are marked *. A) Insurer's promise to pay benefits One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. B) implied authority acceptance B) premium only discreet If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? Which of these factors is NOT taken into account when determining an applicants life insurance needs? C) aleatory Expert answered| selymi |Points 23307|. discreet apparent implied express, Bob and Tom start a business. Legal Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? claim forms It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Q. Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Which of the following BEST describes a conditional insurance contract. Bob and Tom start a business. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? What are conditions in an insurance policy? Variable life insurance and Universal life insurance are very similar. In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? consideration Your email address will not be published. B) Bob's estate A) producer's apparent authority Which of the following BEST describes a conditional insurance contract? underwriting the terms must be accepted or rejected in full D) Tom, The deeds and actions of a producer indicate what kind of authority? Insurance Exam Flashcards | Chegg.com Vegetable B. Within how many days must a licensee notify the Commissioner of a change in address? A. A) definitions The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract?

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